Bayswater Uranium Corporation (TSX-V: BAY), (OTC: BYSWF) announced this morning that it had advised Strathmore Minerals Corp. (TSX-V: STM) ("Strathmore") that it would meet a competing offer for the Pine-Tree Reno Creek Properties in Wyoming.
Bayswater will pay US$20 million to Strathmore, of which US$ 17.5 million is payable in cash and US $2.5 million is payable in shares. Bayswater has also agreed that Strathmore will retain a 5% gross production royalty, which can be repurchased in whole or in part at any time for US $2 million (US $1 million cash and US $1 million in common shares) per 1% royalty reduction.
"The Competing Offer provides the opportunity to acquire 100% ownership of the Reno Creek Property at a cash cost of US$18.5 million upon closing of the transaction, versus a cash cost of US$26 million over two years," states Mr. George Leary, President of Bayswater. "We intend to move forward aggressively to finance the acquisition."
Strathmore Minerals received an unsolicited offer earlier this month from what it said was a foreign based corporation.
Bayswater Uranium was given seven business days to complete the existing transaction or match the terms of the superior competing offer.
Reno Creek has an NI43-101 compliant measured and indicated resource of 5.68 million tonnes grading 0.065% U3O8 (uranium) for a total 7.43 million lbs (pounds) of uranium and an inferred resource of 2.63 million tonnes grading 0.065% for 3.4 million lbs. Pine Tree has a historical measured and indicated resource of 1.95 million tonnes grading 0.07% for 2.65 million lbs and an inferred resource of 625,000 tonnes grading 0.06% for 0.75 million lbs.
Disclosure: The author holds no positions in the company